The ES gapped open higher from Friday’s very small 5 1/2 point trading range. A slow grind higher took price to another new all time high (June contract) at 2402.25 in D period, but failed to reach the Globex all time high at 2403.75.
Value was clearly higher from the prior session with price one timeframing higher through the first four 30 minute periods before balancing for the remainder of the low volume, slow paced trading session. The wider the POC forms the harder it can be for price to trade away from it. Monday’s POC hovered around 2400.00 from the 5th period on, ending the session 10 TPO’s wide at 2398.75.
If the market opens inside the range on Tuesday, the wide point of control could be an important early short term reference.
Acceptance above Tuesday’s POC, or fairest price, targets the all high at 2402.25 and potentially challenges the Globex all time high from May 7th at 2403.75. While they can last for some time, all time highs made in the Globex session have always been revisited during a U.S. regular trading hours session. It doesn’t have to happen, but historically it always has.
The pullback low at the J/K, L, M and N periods were all within a tick of one another, showing very mechanical buying in that area. Price acceptance below Monday’s POC should easily test that level, trading below it could trigger any stops, putting price into the excess single prints from A period with the potential to test Monday’s low and gap fill from Friday at 2390.00.
Market Profile references below Friday’s high are the very prominent naked point of control at 2386.75 and poor low from May 11th at 2379.00.
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from May 7thShare